Lemonade Insurance Company is a property and casualty insurance company that is transforming the very business model of insurance. By injecting technology and transparency into an industry that often lacks both, we’re creating an insurance experience that is fast, affordable, and hassle free. Unlike any other insurance company, we gain nothing by delaying or denying claims (we take a flat fee!), so we handle and pay as many claims instantly as possible.
How is Lemonade’s business different from that of a traditional insurance carrier?
Traditional insurance companies make money by keeping the money they don’t pay out in claims. This means whenever they pay your claim, they lose profit. This is why getting your claims paid fast and in full is sometimes so hard.
Lemonade was built differently. We take a fixed fee out of your monthly payments, pay reinsurance (and some unavoidable expenses), and use the rest for paying out claims. In essence, we treat premiums as if they were still your money and return unclaimed remainders in our annual 'Giveback'.
Giveback is a unique feature of Lemonade, where each year leftover money is donated to causes our policyholders care about. We treat policyholders who care about the same causes as virtual groups of 'peers'. Lemonade uses the premiums collected from each peer group to pay for the group's claims, giving back any leftover money to their common cause, and uses reinsurance to cover for cases where the group's claims exceed what's left in the pool. This way, our customers enjoy amazing insurance, and society gets a little push for the better. It also means that, unlike traditional insurance companies, we're not in conflict with our customers, so we're happy to pay claims fast and with no hassle.
How is Lemonade structured?
Lemonade is the brand name for products and services provided by one or more of the Lemonade subsidiary companies. Lemonade, Inc., a public benefit corporation organized under Delaware law, is the parent company of the group. There are three subsidiary companies under it:
Lemonade Insurance Company (issues your policy and pays your claims)
Lemonade Insurance Agency, LLC (acts as the sales agent for Lemonade Insurance Company and provides certain underwriting and claims services while receiving a fixed percentage of premiums for doing so)
Lemonade, Ltd. This company provides technology, research, and development to the group
More details about Lemonade’s legal structure can be found at Legal Stuff.
How do I get Lemonade?
The full Lemonade experience is available through our iOS and Android app, and you can purchase a policy also through our website. We currently offer renters, condo, and homeowners insurance in New York, California, Illinois, New Jersey, Nevada, Georgia, Pennsylvania, Maryland, Arizona, Michigan, Connecticut, Indiana, Ohio, Wisconsin, Oregon, Texas, Tennessee, Virginia, Iowa, Colorado, Oklahoma, Massachusetts, and the District of Columbia; renters and condo insurance in Rhode Island; and renters insurance in New Mexico and Arkansas (homeowners and condo coming soon). We’ll be rolling out additional states in the coming year.
Is Lemonade reinsured?
We are. Some of the biggest reinsurers in the industry are reinsuring Lemonade.
How are you using my premium dollars?
Glad you asked! Lemonade keeps a fixed percentage of all premiums. This pays for developing loads of cool tech, running an insurance business (including salaries, rent, and such), and hopefully making some profit! This way, our desire for profit does not conflict with our duty to pay claims.
Job #1 is to ensure we can always pay claims
Job #2 is to Giveback money that isn’t needed for Job #1
Here’s how that works:
A big chunk of premium dollars goes to buy "reinsurance" (think of it as insurance for insurance companies) from the most sound and reputable reinsurers on the planet so we’ll have enough money for Job #1, even if we have a 'bad' year.
This kind of reinsurance buys us all peace of mind, but it is costly. So our data scientists have modeled an optimal mix of internal funding and external reinsurance, and we set aside another ~20% as our "rainy day fund".
We say "approximately" because the cost of reinsurance fluctuates over time, and there are other smaller expenses (transactional fees, premium taxes and others) that are also paid from the part of premiums that go to this combination of reinsurance and our rainy day fund.
After these three things, our data scientists estimate that up to 40% of premiums will be available to Giveback to causes our policyholders care about each year. Of course there will be claims, so the amount available for Giveback will average less than 40%. In fact, if the claims of everyone who selected the same cause as you comes to more than 40% of the premiums you all paid, there will be nothing left to Giveback to that cause. But our number crunchers tell us there should be a nice amount left for most causes most years.
And what about the 'bad' years? Fear not. Both we and our reinsurers have set aside funds for exactly such a situation. It’s like we said: Job #1 is to make sure your claim is paid, Job #2 is to Giveback what’s left.
When can I expect Lemonade to be available in my state?
If you’re living outside of New York, California, Illinois, Texas, Rhode Island, New Jersey, Nevada, Ohio, Georgia, Pennsylvania, Maryland, Iowa, Wisconsin, Arizona, New Mexico, Michigan, Oregon, Arkansas, Connecticut, Indiana, Tennessee, Virginia, Colorado, Oklahoma, Massachusetts, or the District of Columbia, we’re on our way! Stay tuned and follow us on Facebook and Twitter.
Are you financially rated?
Yes. We've earned a Financial Stability Rating® of A-Exceptional, from Demotech Inc. and are reinsured by some of the industry’s largest brands.
How can I reach you guys?
You can get in touch with our team through our App and this website. Look for the 'Help' button on the lower right corner of this page. If you are considering Lemonade, feel free to get in touch with us using the message box on this page.
Is my information kept confidential?
What if I am a victim of domestic violence?
If you are a victim of domestic violence, we want you to know this: If you are a victim of domestic violence, the law gives you certain rights and protections. In New York, Section 2612 of the New York Insurance Law and Part 244 of the New York Insurance Regulations provide those rights and protections.
Discrimination is unlawful: An insurance carrier may not, solely because an applicant is a victim of domestic violence:
Refuse to issue or renew, deny or cancel any insurance policy
Demand or require a greater premium or payment from any person
Disclosure is unlawful: An insurance carrier may not disclose to the named insured the address or telephone number of a covered person or of anyone providing covered services to a covered person who has obtained an order of protection against the policyholder from a New York court. This right extends to a covered child and to the parent or guardian of the child.
Additionally, Part 244 establishes confidentiality protocols to guard against disclosure of the address and location of a covered person.
For additional assistance, please contact: New York State Domestic and Sexual Violence Hotline: (800)942-6906 (En Espanol: (800) 942-6908). In NYC, dial: (800) 621-HOPE (4673) or 311 TTY: (866) 604-5350.
To request confidentiality, please email a copy of the order of protection to us at [email protected].
What does being a B-Corp mean?
Lemonade, Inc., the lead company in our group, is a public benefit corporation organized under Delaware law, which means that it is legally permitted to consider the interests of all our constituents, not solely the interests of our owners, in operating our business. This is one factor in all members of the Lemonade group of companies having achieved B-Corp® certification.
B-Corp® is a certification granted by the nonprofit organization B Lab to for-profit companies that meet rigorous standards of social and environmental performance, accountability, and transparency. So although Lemonade seeks to make a profit, our mission is also to be a force for public good. Insurance was created to be a social good, and Lemonade’s mission statement is to transform insurance from a necessary evil into a social good.
How do I know what my policy covers?
You get to see a summary of your coverage and a sample of a policy when you sign up, and before you pay. You’ll also be able to edit your coverage and other policy settings such as the deductible, start dates, and more. After payment, we will instantly issue your final policy and send it to you by email.
How do you calculate my premium?
Premiums are calculated individually for each policyholder and are based on a number of different factors including your credit history, recent claims, and information about your property including its age, size, and construction quality. We also factor in the sensitivity of your home to windstorms, severe weather damage, and fires. We then provide discounts for protection equipment you may have installed, such as fire and burglar alarms.
What policies does Lemonade offer?
How do I get a landlord insurance policy?
If you're a condo/co-op owner in NY, CA, TX, IL, PA, DC, or NJ, and rent out your property less than 5 times a year, you can get a landlord insurance policy from Lemonade. If your property is in one of those states, you can get this policy when chatting with AI Maya and letting us know you're a homeowner, but rent out your property.
This policy protects your property and the stuff you own, but does not protect your tenant. You'll want to encourage them to get their own renters insurance policy (or make it mandatory in your lease!). Note, at this time, we do not provide landlord policies for single family homeowners.
Can I increase or reduce my coverages?
You can, within limits. We made it easy to adjust coverage through the app. Before payment, we’ll show you a summary of your policy coverages. Tapping the Amounts tab will let you configure the coverage amounts of your policy.
What if I want to cancel my policy?
You can cancel your policy at any time through the app, and receive a refund for the remaining period you’ve paid for. Fyi, canceling your policy will eliminate any potential giveback associated with your policy. And if you ever want to come back? No problem! We’ll create a new policy for you. Know that our prices change from time to time, so your new policy may come with a different rate.
Can I switch to Lemonade if I already have an active insurance policy?
Sure you can! If you’re a renter, we’ll simply ask for your current policy number and insurer, and email your provider notifying them of your change in policy. If you’re a homeowner, we’ll notify your lender and handle your escrow payments (if relevant) to switch you over seamlessly to Lemonade.
How do I change my address for my Lemonade policy?
Congrats on the new place! While we can't edit the address on an active policy, it's quite easy to cancel your current policy and create a new one for your new address. Once you move into your new place, you can use the Lemonade app to cancel your policy (keep in mind: cancellation is effective immediately, so don't cancel your current policy until you no longer need it!). You'll receive a pro-rated refund as soon as you do this, ensuring there's no overlap in charges when you create a new policy.
Then, create a new policy for your new address, in a matter of minutes, right there from the Lemonade app. If you have Extra Coverage items, need help providing proof of your new policy to your new landlord ahead of the move date, or are having trouble with the App -- just contact our dedicated Customer Experience team.
How do I pay for Lemonade?
After reviewing your coverage summary and having an opportunity to look at a sample policy, you’ll be able to pay using your credit or debit card. We will charge you when you pay for your policy, and every month thereafter. If you pay through an escrow arrangement, we’ll take a month’s deposit and be in touch to arrange further payments through your bank (if applicable).
Is my roommate covered?
No. Renters and homeowners insurance only covers you and the property that you legally own. Your roommate will need to get their own insurance policy.
Is my spouse covered?
You'll be happy to know that your policy automatically covers all residents of your household who are related to you by marriage, blood, or adoption, so make sure you buy enough coverage for all your (and their) personal property! You can easily add their name to your policy when you're signing up, with no extra charge.
Is my significant other covered?
If you’re living with your significant other, you can add their name on to your policy at an additional cost. Make sure you get enough coverage for the both of you!
Can I add my landlord as an interested party?
Sure! Plenty of landlords and other property management companies require you list them on your policy. They’ll be automatically updated about your Lemonade policy. You can do so, at no additional cost, while getting your policy.
Am I covered if something I own gets stolen outside of my home or apartment?
Yes. Your Lemonade policy covers your personal property “...anywhere in the world…” (a real quote from our policy). Since theft is covered, if your bike gets stolen from in front of your apartment or your laptop gets stolen from your local coffee shop, you are covered up to your policy personal property limit. Your deductible applies, and we will also need you to file a police report with the officer’s name, precinct/department, and report number.
What kind of bad things am I covered for?
Your policy covers you for bad things, or perils, and also covers extra living expenses, if one of those covered things happens. For example, if a kitchen fire forces you out of your apartment or condo, or your upstairs neighbor leaves a faucet running all day and it’s now raining inside your apartment - you may need to get a hotel. Make sure to review your policy to understand the amount of coverage that you have, because there is a lot going on in there!
What kinds of things are not covered under my Lemonade policy?
Unfortunately, it doesn’t cover those annoying things that sometimes happen. Things like your power, water or heat going out in your condo or apartment in the dead of winter, or if your apartment gets infested with bedbugs (eek!) - and you want to get a hotel room. We don’t blame you at all, but these events aren’t covered perils in your policy, so we can’t reimburse you for that. We also don’t cover personal property that gets mistakenly lost or broken. See our cheat sheet of what’s not covered under your policy for more.
Is my laptop covered?
Yes! Your Lemonade policy covers your personal electronic equipment up to the amount you select for Property & Valuables when signing up. Coverage for laptops, phones, tablets, TVs, and other personal electronics are all included, as standard, in the policy. Please note that this is coverage against the list of specific perils mentioned in the policy such as Theft, Fire, Explosion, Vandalism, etc. Now be careful with it, because your policy doesn’t cover loss or breakage if you drop it!
How do I add extra coverage for my expensive items?
We can help add extra coverage for your fine art, jewelry, watches, and some other personal property. Doing so is easy - just send us a note with the appraised values of any items you own that fall in the categories above and we’ll get you a quote! We’ll be offering the ability to add extra coverage for other types of property soon, but in the meantime, you can rest easy knowing the policy already has basic coverage built in for your big purchases like furniture, designer clothing, bike, personal computer, and personal electronics.
If my dog bites someone, am I covered?
Generally, yes. If your dog bites someone you're covered. However, you're not covered if your dog has a history of biting or if your dog is categorized as high-risk, or "vicious." Defined "vicious breeds" can be found in the 'not covered' section of our policy.
If I report a loss or have bad credit, will my premium be affected?
It might. History shows that people with poor credit or who have a record of making claims are more likely to make claims in the future. In fairness, our rates have to take all relevant data points into account, and your credit and claims history are two of the factors in your rate. As your history changes (for better or worse) over time, your rates may reflect it. Some jurisdictions restrict our ability to increase rates due to prior losses or credit.
What if I miss a premium payment?
If your credit card is declined, we’ll ask you to provide us with a different one. Please note, we’ll keep bugging you to settle your tab, but eventually we’ll have to cancel your policy. We’ll warn you first.
Can I sign up by phone?
Lemonade is available for signup only through our mobile apps and our website.
How do you calculate the value of my personal property during a claim?
We offer ‘replacement cost’ for any destroyed, damaged, or stolen items. This means we’ll calculate the value of your item based on its current lowest as-new market value. If the item is no longer being sold, we will look for a similar one, and use that price as reference.
Here’s an example: Your camera has been stolen. You bought it three years ago for $500, and today, this exact model sells at a reduced price of $350. Since our job is to provide you with an exact replacement, the value we will calculate is $350.
Killer prices? I got a quote that’s higher than my old insurer, what gives?
We say we have killer prices, and we mean it. But while our prices tend to be cheaper than the more established players, that won’t always be the case. Insurers use different models and data sets to set prices, and on occasion our prices will be higher than someone else’s. It’s the way statistics work. If it’s any comfort, please remember that any leftover money will be donated to a charity of your choosing, so go ahead and get Lemonade anyway!
Is my Self-Storage Locker covered?
For personal property stored in a self-storage facility, or usually stored at a different place, our policy covers you for theft up to a limit of $1,000. Note, if you’re in NY, CA, or CT, our policy covers your personal property in self-storage units for up to 10% of your Coverage C (personal property limit). Make sure to review your policy to understand the amount of coverage you have.
Oh, and BTW - if your personal property is stored in the basement closet or cage of your condo or apartment, it’s covered because it’s still at your home address.
Do you offer earthquake coverage?
Right now, we offer earthquake insurance in Arkansas and California. We're looking to expand this offering to other states, so stay tuned!
How do I file a claim?
Easy! Just open the Lemonade app and hit the Claim button. We will guide you through the rest of the short process there.
How will I get paid for a claim?
After you complete the claim report on the Lemonade app, you will be asked to enter your bank account wire information. Once your claim is approved, we’ll issue payment, minus the amount of the deductible, directly into your account.
How fast will a claim be paid?
Our goal is for the majority of simple property claims to be paid almost instantly. There will be cases in which we’ll need to fully review the incident to approve the claim, and there will be property damage claims or liability claims that may take longer to settle. If this is not the first loss you are reporting, or if some of the information we require is missing from your report, our team will need extra time to manually assess the incident and will most likely get in touch with you for further review.
Why does Lemonade ask me to record a video during the claims process?
There’s no better way for us to understand your incident than by having you tell us in your own words. It only takes a minute to shoot the video. We’ll use your video solely for the process of handling or reviewing your claim.
What’s considered a claim emergency?
We define an emergency as an event that requires immediate assistance or temporary housing as a result of fire, ongoing water damage, or any other structural damage that leaves your home exposed. Shortly after you report an emergency, our response team will call you to assess the situation and provide you with emergency services such as water or fire damage cleanup, temporary housing, or a designated specialist as soon as possible. We have your back, 24/7. Lemonade has a network of emergency response and repair partners enabling us to respond to just about any incident at just about any time. For emergencies, and in cases where you don't have access to our app or website, you may call us at: (844) 733-8666.
What documentation do you need from me? Do I need to take an inventory?
When filing a claim, if you have receipts that's great! But, we know that not everyone saves their receipts. Tip from us: make sure to keep your receipts on the more expensive stuff you buy—say $250 and up. That way, we can settle your claim more quickly. Even if you don’t have the receipt, keeping note of where and when you purchased more expensive items will help us help you. Please note that if you have a claim, we'll always work closely with you to identify suitable replacements.
What is a deductible?
This is the amount that will be deducted from any claim payment you may receive. Think of it as your participation in the damage or loss. When you buy a policy, you can choose the deductible amount you’d like to have in case of a claim. So, why would anyone choose a high deductible? Well, the higher the deductible, the lower your monthly payments will be.
Here’s an example: You chose a deductible of $250 when you bought your policy. A few months later, someone stole your $1,000 laptop. The payment you'll receive for your claim will be $750: $1,000 minus the deductible, which in this case was $250.
What is Lemonade’s Zero Everything?
Lemonade’s Zero Everything is a unique product that allows users to ‘undo’ losses. From a stolen bike to water damage from your burst pipe, policyholders with Zero Everything can receive claim payments with no deductible (you’ll get full replacement cost upon claim approval) and no rate hikes, up to two claims per year.
Zero Everything is currently available only in selected areas.
How does Zero Everything work?
Zero Everything allows for the payments of up to two claims per year, and upon renewal starts off as a clean slate (no claims), and with no rate hike. If there are more than two claims a year, the third claim (and subsequently thereafter) will automatically have a $250 deductible tied to it, and upon renewal, this third claim will be counted towards a possible rate hike.
Zero Everything can be activated once per policy.
What is a hurricane deductible?
A hurricane deductible works just like a normal deductible, but only applies if the damage is caused by a hurricane.
These are typically for homeowner policies, but can apply in other cases. You'll see it clearly next to your normal deductible in the app and in your policy.
What is liability protection?
We offer personal liability protection to both renters and homeowners, which means Lemonade will hire a lawyer to defend you, and pay covered damages you are found liable for, in the event someone claims to be injured due to your actions or negligence, or there is property damage to someone else’s property caused by your actions or negligence. Make sure to read your policy. If you experience an incident that may fall under this coverage, then make a claim using our app.
How can I lower my homeowners policy price (premium)?
Your policy price (the ‘premium’) is affected mostly by the coverage amounts of your policy, which you can easily adjust before payment. A higher deductible may lower your price.
In addition, your rate may be reduced if you live in areas that are less susceptible to environmental, crime, or weather damages and if you own protection equipment such as fire and burglar alarms.
Will my credit score be affected by applying for a policy?
No. We sometimes perform a ‘soft’ credit check, but this does not affect your credit score in any way. We may have to run this check in order to complete your policy pricing.
As a renter, how much coverage do I need?
Your policy limits for coverage should be determined by the value of your personal property. If you live alone, $10,000 is a good starting point. If you own jewelry items that are worth more than a $1,000 per item, let us know and we will be happy provide a quote for their addition. For couples, we suggest starting with $20,000 - $40,000 coverage.
Why should I get extra coverage for my personal property?
Extra Coverage provides you with protection against accidental loss, damage, and theft, worldwide. (FYI, your base policy does not cover stuff that gets lost)
This means that unlike standard coverage, there will be no deduction of funds from your claim payment. What is an insurance deductible?
Get coverage for jewelry worth $1,500 or more
Your base policy covers your jewelry for up to $1,500 in total. So, sum up your bling, and if it’s more than $1,500 collectively, you’re going to want Extra Coverage.
When can I add Extra Coverage?
Always! Please note that Extra Coverage only kicks in after your items have been submitted and approved by our team. Items are added one at a time, and you will need to provide a short description, photo, and receipts or appraisals for each item.
What kind of items can I add?
Currently, our Extra Coverage is offered for jewelry, fine art, cameras, bicycles, and musical instruments. You do not need to add extra coverage for your personal electronics, furniture and clothing, as they are covered by your base policy.
What happens if Lemonade does not approve my item?
Our team reviews each item to determine if it’s eligible for Extra Coverage. If your item is not approved, it may be because your item is already covered by your base policy, or your item may need special coverage that is not currently offered by Lemonade. In any case, your base policy will not be affected.
Giveback and community
What is this Giveback thing?
Insurance works by pooling small amounts of money (premiums) from a large group of people to pay for the unlucky few who suffer covered losses (claims). Since it’s impossible to predict how much money will be needed to cover these losses, the amounts people are asked to pay may be higher than what’s needed some years. Often, there’s money left at the end of the year.
Insurance companies take this money as profits. That may make them reluctant to pay claims, since it damages their earnings. But we think there’s a better way. Instead of keeping this money, we intend to pay it forward to causes people care about and help bring positive social impact to local communities and global causes. Years with high claims and other expenses may deplete the “Giveback,” but the good news is that our actuaries (the folks who crunch the numbers for these sort of things) say that there “should” be some money left over for most causes every year.
Note, the Giveback is currently not recognized as a tax deductible donation- sorry!
When do you pay the Giveback?
At the end of June, we calculate and pay the Giveback. We pay the Giveback in 4 equal payments over 4 years.
What happens to my Giveback if I cancel my policy before receiving all four payments?
Lemonade only pays a Giveback with respect to active policies.
How often can I change causes?
Once you pick a cause, it will be set until the following June. Once the Giveback is paid, you will have an opportunity to pick a new cause.
How can I add my cause to your Giveback program?
We’ll be happy to consider your cause for our Giveback program. For more information, reach out to us: [email protected]
Is the Giveback guaranteed?
No. Giveback is part of our corporate policy, and our plan is to pay it every year. But sometimes, peer groups will not have any money left to give back because their claims depleted the Giveback pool. Paying claims is our top priority, and in extreme circumstances could come at the expense of the Giveback.